35-CERT 1 a10502.txt UNITED STATES OF AMERICA BEFORE THE SECURITIES AND EXCHANGE COMMISSION Washington, D. C. . . . . . . . . . . . . . . . . . . . . . . . . . . . In the Matter of . . ENTERGY ARKANSAS, INC. . ENTERGY LOUISIANA, INC. . ENTERGY MISSISSIPPI, INC. . ENTERGY NEW ORLEANS, INC. . . File No. 70-5015 . ________________ CERTIFICATE PURSUANT TO In the Matter of RULE 24 . SYSTEM FUELS, INC. . SYSTEM ENERGY RESOURCES, INC. . ENTERGY ARKANSAS, INC. . ENTERGY LOUISIANA, INC. . ENTERGY MISSISSIPPI, INC. . ENTERGY NEW ORLEANS, INC. . . File No. 70-5889 . ________________ . . . (Public Utility Holding Company Act of 1935) . . . . . . . . . . . . . . . . . . . . . . . . . . . Pursuant to Rule 24 promulgated by the Securities and Exchange Commission (SEC) under the Public Utility Holding Company Act of 1935, modified by request in the application(s) - declaration(s) referenced above, this is to certify that the following transactions were carried out and borrowings made, during the first quarter ended March 31, 2002 pursuant to System Fuels, Inc.'s (SFI) function as a supplier of fuel for the Entergy Corporation Operating Companies (System) in accordance with the terms and conditions of and for the purposes represented in the application(s) - declaration(s), as amended, and pursuant to the Orders of the SEC, dated December 17, 1971 in File No. 70-5015 and April 28, 1978 in File No. 70-5889. Expenditures for SFI's fuel program for 2002 during the 1st quarter are indicated below: Net Expenditures (In Thousands) 1st Quarter Year-To-Date 2002 Fuel Supply Program: 1. Gas and Oil Development and Production $ 0 $ 0 2. Nuclear Fuel Procurement (12,253) (12,253) 3. Fuel Oil Program (4,562) (4,562) -------- -------- TOTAL EXPENDITURES (16,815) (16,815) -------- -------- Less funds derived through Amortization & depreciation Charges Amortization of Gas & Oil Development & Production Costs (326) (326) Depreciation & Other Amortization 1 1 -------- -------- TOTAL depreciation & amortization (325) (325) -------- -------- Net Expenditures (17,140) (17,140) (Increase) decrease in: Outside financing System Money Pool borrowings 19,126 19,126 -------- -------- TOTAL (increase)decrease in borrowings 19,126 19,126 -------- -------- Increase (decrease) in working Capital $ (1,986) $ 1,986) ======== ======== 1. Gas and Oil Development and Production Net Expenditures (In Thousands) 1st quarter Year-To-Date Gas and Oil Development and Production $ 0 $ 0 ======== ======== Effective July 1, 1996, SFI sold its interest in the properties associated with its Gas and Oil Development and Production Program (the program). During this quarter, SFI had no expenditures relative to the continuing shutdown of this operation. As of March 31, 2002, accumulated net proceeds of approximately $578,134 are retained at SFI for the continuing shutdown activities. Calculation of the net expenditures (proceeds) from the continuing shutdown activities of the Program, is: Net Expenditures (In Thousands) 1st Quarter Year-To-Date Sales to non-System parties: Natural gas $ 0 $ 0 Condensate 0 0 Crude oil 0 0 -------- -------- TOTAL 0 0 Miscellaneous income (including sale of assets) 0 0 -------- -------- TOTAL 0 0 General and administrative Expense 0 0 Operating expense 0 0 Interest expense 0 0 Amortization adjustment (326) (326) -------- -------- Net proceeds ($326) ($326) ======== ======== 2. Nuclear Fuel Procurement Net Expenditures (In Thousands) 1st Quarter Year-To-Date Nuclear Fuel Procurement $12,253 $12,253 ======= ======= Net Expenditures (In Thousands) 1st Quarter Year-To-Date Activities during the period: Expenditures for nuclear Materials and processing Services $17,894 $17,894 General and administrative Expense 80 80 Interest expense 224 224 -------- -------- TOTAL 18,198 18,198 -------- -------- Sales of nuclear materials and Processing services to System companies 30,451 30,451 -------- -------- Net effect on inventory ($12,253) ($12,253) ========= ========= 3. Fuel Oil Program Net Expenditures (In Thousands) 1st Quarter Year-To-Date Fuel Oil Inventory $(4,562) $(4,562) ======== ======== a) Fuel Oil Inventory: Barrels Book Value Inventory as of: (In Thousands) March 31, 2002 1,445 28,880 December 31, 2001 1,731 33,442 September 30, 2001 2,107 38,232 June 30, 2001 1,588 41,659 March 31, 2001 2,136 58,529 During 1st Quarter Barrels Value Sales price per barrel to System companies Excluding period cost: #2 Fuel Oil 30,812 32.05 #6 Fuel Oil 0 0.00 4. Other Items: a) As of March 31, 2002, SFI's outstanding debt and Parent Companies investment consisted of: Parent Companies: In Thousands Common Stock $ 20 Notes payable 34,000 --------- TOTAL 34,020 System Money Pool 8,616 Banks 0 --------- TOTAL 42,636 ========= b) As of January 1, 1987, SFI's employees were transferred to Entergy Services, Inc. (Entergy Services). Entergy Services bills SFI for labor associated with the operation of continuing activities for SFI and other services provided to SFI (financial, legal, administrative, and other activities). For the 1st quarter of 2002, SFI was billed by Entergy Services for the following amounts: Total January February March 1st Qtr Cost of service charged to Service Requests established to track cost of functions previously performed by SFI personnel: Direct Cost: Labor and related Cost $ 10,935 $ 6,057 $ 7,069 $ 24,061 Other direct cost 2,747 1,618 2,894 7,259 Indirect Cost 2,481 1,392 1,813 5,686 -------- ------- -------- -------- TOTAL 16,163 9,067 11,776 37,006 -------- ------- -------- -------- Cost of services charged to Service Requests not Related to transfer of SFI personnel: 53,502 53,322 96,813 203,637 -------- ------- -------- -------- Total cost of services performed by Entergy Services $ 69,665 $62,389 $108,589 $240,643 ======== ======= ======== ======== Amounts billed to Operating Companies for The Fuel Oil Program* $ 48,605 $42,246 $ 70,762 $161,613 Charged to Nuclear Fuel Procurement 21,060 20,143 37,827 79,030 -------- ------- -------- -------- TOTAL $ 69,665 $62,389 $108,589 $240,643 ======== ======= ======== ======== * Charged to the Fuel Oil Program as a component of period costs. Effective January 1, 1998, Fuel Oil Program period costs are recorded by plant, to the extent possible, and direct billed to the operating company that owns the facility where incurred. Costs which cannot be directly associated with a facility or an operating company, continue to be allocated as before. For the 1st quarter of 2002, such Fuel Oil Program period costs were allocated 9.82% to ENTERGY ARKANSAS, INC., 50.59% to ENTERGY LOUISIANA, INC., 29.69% to ENTERGY MISSISSIPPI, INC., and 9.90% to ENTERGY NEW ORLEANS, INC. c) As previously reported, the System's fuels planning and procurement administration was reorganized during 1988, redefining the fuels management roles and placing the responsibility for most fuel procurement decisions with Entergy Corporation System Executives. SFI, utilizing Entergy Services personnel, continues to be responsible for gas and oil production shut down, financing nuclear fuel inventory and fuel oil inventory and facilities, and accounting functions related to these continuing activities. IN WITNESS WHEREOF, SFI has caused this certificate to be executed as of the 30th of April 2002. ENTERGY ARKANSAS, INC. ENTERGY LOUISIANA, INC. ENTERGY MISSISSIPPI, INC. ENTERGY NEW ORLEANS, INC. SYSTEM ENERGY RESOURCES, INC. BY:/s/ Nathan E. Langston --------------------------- Nathan E. Langston Vice President and Chief Accounting Officer SYSTEM FUELS, INC. BY:/s/ Steven C. McNeal --------------------------- Steven C. McNeal Vice President and Treasurer